What to know:
- DigiAsia Corp plans to raise up to $100 million to invest in a bitcoin treasury reserve.
- The company’s shares surged 91% after the announcement but later fell 22% in after-hours trading.
- DigiAsia intends to allocate up to 50% of future net profits to bitcoin purchases and explore yield-generating strategies.
As a researcher, I’m sharing an upcoming development: DigiAsia Corp (FAAS) is strategizing to accumulate up to $100 million, earmarked for establishing a Bitcoin reserve (BTC). This move positions them among an expanding group of publicly traded companies aiming to enrich their corporate portfolios by incorporating Bitcoin.
On Monday, an announcement was made, outlining future strategies rather than implemented steps, which propelled DigiAsia’s shares by 91% to 36 cents during normal trading. However, after the market closed, there was a drop of 22%. Despite this, the stock is currently over 50% lower compared to its value at the start of the year.
According to a recent press statement, the firm announced that it will direct as much as half of its incoming earnings towards buying Bitcoin, while also considering increasing its capital by up to $100 million.
Additionally, they aim to implement income-producing tactics for their Bitcoin assets. This could involve lending Bitcoin to institutions and staking it with trusted, regulatory-compliant partners.
According to Prashant Gokarn, Co-CEO of DigiAsia, it is thought that bitcoin offers an attractive long-term investment opportunity and serves as a crucial building block for modern portfolio diversification strategies. (This version attempts to maintain the original meaning while using simpler language and rephrasing some of the words and phrases for clarity.)
The company mentioned they were considering various funding options, including convertible notes and cryptocurrency-based tools, to back this project.
In an update from April, DigiAsia forecasted a total revenue of approximately $101 million for the year 2024 and projected an estimated earnings of around $12 million this fiscal year before considering interest and taxes. It’s uncertain if DigiAsia will proceed with its Bitcoin purchases as planned. However, just the announcement has given the fintech a temporary surge in value on Wall Street.
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2025-05-20 09:35